Tasmania and South Australia are not as keen as the likes of WA about a change in the way the tax is distributed.

SA Premier Jay Weatherill is asked for his views and replies by taking a big 'ol swipe at Colin Barnett (who is sitting but two seats away).

"They have struck it rich and they have decided they want to essentially cut themselves adrift from the rest of the Federation, which I think is intellectually bankrupt and also morally bankrupt, says Weatherill.

(With this, the PM gives Barnett a pat on the arm.)

2:13pm on 2 May 2014

The Prime Minister when asked for his reaction to Gallacher says he "can't comment on matters that I have been absent from".

TA explains that he has been in a COAG meeting and isn't familiar with what may or may not have happened today in Sydney.

One of the (many) headline recommendations out of the Aud Com report yesterday was that the feds should hand over responsibility for schools and hospitals to the states.

The PM is asked if he has a view on this.

Tony Abbott says that it's a "proper" subject for discussion, but adopts a wait and see approach for now (given the white papering going on).

"Let's see where this discussion goes because we're at the beginning of a process."

He is also asked about the recommendation that states could levy income tax.

"The last thing I want to see is any idea of double taxation," the PM replies.

"People are perfectly entitled to put things on the table ... but in the end ... if there is to be any substantial change, obviously it has to be something which is supported by the Commonwealth government. And obviously it would go to an election."

2:01pm on 2 May 2014

While you're getting excited about GST changes, Tony Abbott leaps in to say:

"I want to stress that the position the Commonwealth government took to the election [is], we have no plans for change in this area..."